IN REPLY 

REFER TO 

DEFENSE LOGISTICS AGENCY 

HEADQUARTERS 

8725 JOHN J. KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 22060-6221 

September 18, 2012 

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS 

SUBJECT: Approved Defense Logistics Management System (DLMS) Change (ADC) 1017, 

Intra-DLA Change: Revisions to Procedures and to DLMS 527R Receipt and 9471 

Inventory Adjustment, and MILSTRIP to Support the Upgrade from Scrap Process 

used by DLA Disposition Services under Reutilization Business Integration (RBI) 

(Supply (DLMS/MILSTRIP)) (Staffed as PDC 1017) 

The attached change to Defense Logistics Manual (DLM) 4000.25, DLMS, is approved for 

implementation. The updated DLMS Supplements will be posted to the DLA Logistics 

Management Standards Office Website www.dla.mil/j-6/dlmso/elibra:rv/TransFormats/fonnats.asp 

within 10 days from the above date for implementation planning. This is an intra-DLA change 

with a target implementation date of August 27, 2012. 

Addressees may direct questions to Ms. Mary Jane Johnson, (703) 767-0677; DSN 

427-0677 or email: Mary.Jane.Johnson@dla.mil. Others may direct questions to their 

Service or Agency designated Supply PRC representative. 

Attachment 

As stated 

cc: 

ODASD(SCI) 

Director 

DLA Logistics Management 

Standards Office 

Federal Recycling Program G Printed on Recycled Paper 
Page 1 of 6 ADC 1017

ATTACHMENT TO ADC 1017

Intra-DLA Change: Revisions to Procedures and to DLMS 527R Receipt and 947I 

Inventory Adjustment, and MILSTRIP to Support the Upgrade from Scrap Process 

Used by DLA Disposition Services under Reutilization Business Integration (RBI) 

(Supply (DLMS/MILSTRIP))

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Service/Agency: Defense Logistics Agency (DLA); DLA Disposition Services 

b. Technical POC: DLA Logistics Information Service, LAR 269.961.7521

c. Functional POC: DLA Disposition Services, DB 269.961.5906

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Supply/Logistics

b. Primary/Secondary Functional Process: Primary: Supply - Materiel Receipt/Inventory 

Secondary: Property Accountability

3. REFERENCES:

a. DLA Logistics Management Standards Office memorandum, dated November 15, 2011, 

subject: Approved Defense Logistics Management System (DLMS) Change (ADC) 443, IntraDLA Revisions to Procedures and to 527R Receipt and 947I Inventory Adjustment for the 

Downgrade for Scrap Process for use by DLA Disposition Services under Reutilization 

Business Integration (RBI)(Supply), www.dla.mil/j-6/dlmso/eLibrary/Changes/approved5.asp

b. DOD 4160.21-M, Defense Materiel Disposition Manual, Chapters 1 and 3,

www.dtic.mil/whs/directives/corres/pdf/416021m.pdf

c. Defense Logistics Manual (DLM), 4000.25, DLMS, Volume 2, Supply,

www.dla.mil/j-6/dlmso/elibrary/manuals/dlm/dlm_pubs.asp

d. DLM 4000.25-1, Military Standard Requisitioning and Issue Procedures (MILSTRIP), 

www.dla.mil/j-6/dlmso/elibrary/manuals/dlm/dlm_pubs.asp

e. DLA Logistics Management Standards Office memorandum, July 17, 2012, subject: 

Proposed DLMS Change (PDC) 1017, Intra-DLA Change: Revisions to Procedures and to 

DLMS 527R Receipt and 947I Inventory Adjustment to Support the Upgrade from Scrap 

Process used by DLA Disposition Services under Reutilization Business Integration (RBI) 

(Supply)
.

Attachment

ADC 1017

Page 2 of 6

4. APPROVED CHANGE:

ADC NOTE: Significant changes from the PDC are highlighted in yellow throughout.

a. Brief Overview of Change: ADC 443 (reference 3.a.) revised DLMS 527R Receipt and 

947I Inventory Adjustment transactions to support the downgrade of materiel from scrap by DLA 

Disposition Services as authorized under DOD authority in DOD 4160.21-M (reference 3.b.). This 

change further updates DLMS 527R and 947I to accommodate upgrading of an item from scrap for 

items already receipted as, or downgraded to, scrap that are later identified as useable items. The 

upgrade from scrap process in the DLA Disposition Services Field Office system is initiated by 

indicating specific warehouse location and entering the Local Stock Number (LSN). 

b. Background: The DLA Disposition Services is a worldwide presence within the 

Department of Defense, with disposal specialists in 14 foreign countries, two U.S territories, and 

39 states. DLA Disposition Services’ mission is the execution of disposition solutions for excess 

military property. The RBI project will replace the Defense Reutilization and Marketing Service 

(DRMS) Automated Information System (DAISY) by integrating DLA Disposition Services 

business processes within the DLA enterprise suite of applications, including the Enterprise 

Business system (EBS) for materiel management functions and the Distribution Standard System 

(DSS) for warehousing/distribution functions.

c. Describe Approved Change in Detail: There are a variety of instances in which DLA 

Disposition Services would perform an upgrade from scrap. Items that were downgraded upon 

receipt, or that were downgraded when screening was complete may be upgraded from scrap if a 

business need exists. Additionally, items that were downgraded to scrap but are later identified as 

usable items would be upgraded. 

(1) Upgrading an item from scrap begins with the assignment of a Unique Control 

Number (UCN) in DSS, where the eleventh digit is assigned a utilization code value of U ‘C’1 to 

indicate the 527R receipt of the item is the result of an upgrade from scrap. The DLA Disposition 

Services Field Office will then enter the Scrap LSN that is being upgraded, as well as the 

warehouse location of the scrap pile for this scrap LSN, in the field office’s system. Both the 

warehouse location and the LSN are necessary for the DLA Disposition Services Field Office 

system to properly maintain inventory integrity. The field office will also identify the weight to be 

removed from the pile, which will be passed from the field office system to EBS via the DLMS 

947I Inventory Adjustment Decrease transaction discussed in subparagraph (2) below. The field 

office will also record the DSS-internal type turn-in it would like the scrap item to be upgraded to 

(i.e., US – Usable, HM – Hazardous Materiel, or HW – Hazardous Waste).

(2) DSS will generate a 947I Inventory Adjustment transaction with Quantity or Status 

Adjustment Reason Code BR for Inventory Adjustment Decrease (Upgrade from Scrap) to decrement 

the relevant scrap pile for the designated weight of the scrap to be upgraded. The 947I Inventory 

Adjustment transaction is sent to EBS to update the proper inventory records. The field office will 

 1 See PDC Response/Comment Table at paragraph 10, row 7. Use of ‘U’ in the 11th position (first position of 

serial number) to identify upgrade from scrap, as identified in the PDC, conflicted with DOD MILSTRIP guidance

for the utilization code (11th position). DLA Disposition Services will use Utilization Code C instead of U.
.

Attachment

ADC 1017

Page 3 of 6

enter the relevant receipt information in the DSS receipt process. At this step in the process the field 

office will identify the National Stock Number (NSN) the scrap is being upgraded to, in addition to 

quantity and the other data required for a regular receipt. After the field office has completed this 

process, a 527R Receipt transaction, with 2/LIN01/10 code V indicating Upgrade from Scrap, will be 

sent to EBS for further processing.

(3) The upgrade from scrap process will not reference a specific scrap DTID. All 

adjustments and subsequent receipts will reference only the scrap LSN and the warehouse location 

of the scrap pile. DLA Disposition Services has indicated that tracking by the scrap DTID is not a 

required functionality. Therefore, the DLMS 527R will pass the new usable NSN in the LIN02-FS 

qualifier, and the original scrap LSN in the reference segment LIN08-SW, for auditability purposes

but will not pass a reference DTID.

(4) The 947I requires a new quantity or status adjustment reason code (segment 

W1901) for upgrades from scrap for EBS tracking purposes, similar to the W1901 code BS used 

for downgrade from scrap adjustments. The code description shall indicate the 947I is an Inventory 

Adjustment Decrease (Upgrade from Scrap), Loss resulting from the DLA Disposition Services 

process to upgrade materiel from scrap to a usable, hazardous materiel, or hazardous waste status 

subsequent to the initial receipt of materiel. There is no corresponding MILSTRAP legacy DIC 

for this use. DLMS 947I, 2/W1901/0200, Quantity or Status Adjustment Reason Code ‘BRRegrade’ is approved by this ADC for Inventory Adjustment Decrease (Upgrade from Scrap).

(5) In addition, the 527R requires a new Source of Materiel Received/Returned code 

(segment LIN01) for Upgrade from Scrap. This code will be used for a receipt transaction

resulting from DLA Disposition Services process, authorized by DOD 4160.21-M, to upgrade 

materiel from scrap. There is no corresponding MILSTRAP legacy DIC for this use. DLMS 

527R, 2/LIN01/010 Source of Materiel Received/Returned Code V is approved by this ADC for 

Upgrade from Scrap.

d. Revisions to DLM 4000.25 Manuals: 

(1) Revise DLM 4000.25, DLMS (reference 3.c.), Volume 2, Chapter 16, as shown in 

Enclosure 1. Changes include revise the title of paragraph C16.6.4. from Scrap Downgrade to 

Reclassification of Scrap; restructure Section C16.6.4 with 2 major subsections: C16.6.4.1 

Downgrade to Scrap, and C16.6.4.2 Upgrade from Scrap; renumber existing C16.6.4.1 Downgrade 

from Scrap paragraphs as needed to conform to this approach, and add a new section C16.6.4.2 for 

Upgrade from Scrap.

(2) Revise DLM 4000.25-1, MILSTRIP (reference 3.d.), Appendix 2.7, Document 

Number, paragraph AP2.7.5.3. as follows (change identified by red bold italics):

 AP2.7.5.3. The following alphabetic codes have been reserved for use in rp 40:

CODE EXPLANATION

C Use in the document number (unique control number) assigned for receipt of an item 

upgraded from scrap under DLA Disposition Services procedures. (This meaning is 

applicable only to DLA Disposition Services Field Office-prepared receipt transactions.)
.

Attachment

ADC 1017

Page 4 of 6

(3) Revise DLMS 527R Receipt and DLMS 947I Inventory Adjustment as 

shown in Enclosure 2.

 e. Proposed Transaction Flow: The upgrade from scrap transaction is initiated in DSS 

using a specialized receipt process, which requires the DLA Disposition Services Field Office to 

enter information pertaining to the scrap LSN, warehouse location, and weight of the scrap being 

upgraded. Once this information is entered, a 947I transaction with Quantity or Status 

Adjustment Reason Code BR is generated in the background and is sent to EBS to update the 

record. The field office continues with the process of the re-receipt, thus resulting in a 527R 

transaction, with the 2/LIN01/010 source of Materiel Received/Returned Code V, which is sent 

to EBS for further processing. There are no MILSTRAP legacy DIC equivalents, for inventory 

adjustment or receipt, for this functionality.

f. Alternatives: None available at this time.

5. REASON FOR CHANGE:

a. As a result of RBI, DLA Disposition Services Field Offices will use DSS and DLA 

Disposition Services Inventory Control Point (ICP) will use EBS to manage inventory and property 

issues. The DLA Disposition Services Field Office will initiate the upgrade from scrap process by 

indicating warehouse location, the LSN and entering the designated weight to be adjusted from the 

scrap pile in the field office system, thus creating a receipt transaction to add the adjusted upgrade as 

a newly-receipted item.

b. DLA Disposition Services may upgrade items that were downgraded to scrap upon receipt, 

or that were downgraded when screening was complete, if a business need exists. Additionally, 

items that were downgraded to scrap but are later identified as usable items would also be upgraded.

This change will add the functionality to the DLMS 527R Receipt and DLMS 947I Inventory 

Adjustment transactions, which is needed to perform these functions as required by DLA Disposition 

Services. This change also updates the DLM 4000.25, DLMS, procedures to address this process.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Implementation of this change will meet the business need of the DLA 

Disposition Services Field Offices to upgrade materiel from scrap. DLA Disposition Services 

(using EBS and DSS), will be able to comply with DLMS standards for RBI processes.

b. Disadvantages: Updating these transactions will require DSS and EBS coding changes 

to accommodate the new data content in the DLMS transactions.

 

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Target implementation 

date is August 27, 2012.

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: N/A
.

Attachment

ADC 1017

Page 5 of 6

9. IMPACT:

a. New DLMS Data Elements: None.

b. Changes to DLMS Data Elements:

(1) Adds a new value to the reason for materiel receipt/return (MRR) code list. The 

code is located in DLMS 527R Receipt 2/LIN01/010.

(2) Adds a new value to the quantity or status adjustment reason code in DLMS 947I 

Inventory Adjustment (2/W1901/0200).

c. Automated Information Systems (AIS): Impacts DLA AIS only. DLA EBS and 

DLA DSS will require coding changes to properly complete the described upgrade from scrap 

process.

d. DLA Transaction Services: Revisions necessary to recognize the new data in DLMS 

527R and 947I as needed.

e. Non-DLA Logistics Management Standards Publications: DLA should update 

Disposition Services publications, if needed, to address the Upgrade from Scrap process.

10. PDC RESPONSES:

Organization Responses/Comments to PDC 1017 (reference 3.e.) Disposition

1 DLA Concurs without comment. Noted.

2 Army Concurs without comment. Noted.

3 Marine Corps Concur as written. Noted.

4 Air Force Concurs without comment. Noted.

5 Navy Concurs as written and submits no additional changes or 

amendments.

Noted.

6 USTRANSCOM Abstains - No impact to USTRANSCOM systems. Noted.

7 DLA Logistics 

Management 

Standards 

Office

RE: "Upgrading an item from scrap begins with the assignment of 

a Unique Control Number (UCN) in DSS, where the eleventh digit 

is assigned a value of 'U' to indicate the 527R receipt of the item is 

the result of an upgrade from scrap."

COMMENT:

The UCN is actually a form of a document number and the 11th

position of the document number is a MILSTRIP 

controlled/embedded code identified in DLMS as the Utilization 

Code. The U is one of the few Utilization Codes that is

universally recognized because of its use in billing. DOD 

MILSTRIP defines as follows (refer to MILSTRIP, Appendix 2.7, 

Document Number):

"U Product quality deficiency report (PQDR) and supply 

discrepancy report (SDR) related transactions when the original 

requisition number is not known. (See MILSBILLS procedures in 

RBI provided the following 

disposition to this comment:

DLA Disposition Services 

would like to use "C" in the 

eleventh place instead of

"U". The relevant line in the 

ADC would read:

“Upgrading an item from 

scrap begins with the 

assignment of a Unique 

Control Number (UCN) in 

DSS, where the eleventh 

character is assigned a 

utilization code value of 'C' 

to indicate the 527R receipt 

of the item is the result of
.

Attachment

ADC 1017

Page 6 of 6

Organization Responses/Comments to PDC 1017 (reference 3.e.) Disposition

DLM 4000.25, Volume 4, Finance)."

Therefore the U cannot be re-used for this unique DLA 

Disposition Services meaning. ADC 443 did not identify an 11th

position value for the Upgrade from Scarp process, so this is the 

first time Disposition Services identified in a PDC/ADC use of the 

11th position to distinguish a process. 

Recommend DSS use any value other than one that is already 

prescribed by DOD MILSTRIP. Disposition Services is 

allowed to use the 11th position (first position of the serial 

number) for any internal meaning as long as it doesn't conflict 

with MILSTRIP, and they do not have to propose to

MILSTRIP if it is not to be recognized outside Disposition 

Services.

Another alternative, if recommendation above is not 

acceptable, is that DLA Disposition Services could place the U 

at the end of the serial number in the UCN.

an upgrade from scrap.”

And Chapter 16:

“Upgrading an item from 

scrap begins with the 

assignment of a UCN on the 

DLMS 527R Receipt 

transaction, where the 

eleventh character is

assigned a value of 'C' to 

indicate it is related to an

upgrade from scrap. 

With the above changes, RBI 

accepts the ADC as 

proposed.

Enclosures
Page 1 of 3 Enclosure 1, ADC 1017

ENCLOSURE 1 to ADC 1017

Intra-DLA Change: Revisions to Procedures and DLMS 527R Receipt and 947I 

Inventory Adjustment to Support the Upgrade from Scrap Process used by DLA 

Disposition Services under RBI

Revise DLM 4000.25, DLMS Volume 2, Chapter 16. Change the title of paragraph C16.6.4. from 

Scrap Downgrade to Reclassification of Scrap. Restructure Section C16.6.4 with 2 major subsections: 

C16.6.4.1 Downgrade to Scrap, and C16.6.4.2 Upgrade from Scrap. Renumber existing C16.6.4 

Downgrade from Scrap paragraphs as needed to conform to this approach and add a new section 

C16.6.4.2 for Upgrade from Scrap. Changes are shown in bold red italics: 

C16.6.4 Reclassification of Scrap Downgrade

C16.6.4.1. Downgrade to Scrap. The downgrade to scrap process is used by the

DLA Disposition Services and its field offices when an item is no longer needed and the property 

has no commercial value other than for basic materiel content. Policy and authority for 

downgrading materiel to scrap can be found in DoD 4160.21-M, “Defense Materiel Disposition 

Manual”.

C16.6.4.2.1.1. Downgrade Items Upon Receipt (at Time of Turn-in): During 

the receiving process, if the DLA Disposition Services Field Office determines the item has only 

scrap value, the item may be downgraded to scrap upon receipt. The field office shall assign a 

Disposition Services Scrap LSN to replace the existing NSN or LSN found on the original DTID 

number or DTID number and suffix generated by the customer.

C16.6.4.2.1.1.1. Assignment of ‘Disposition Category’ for Items 

Downgraded Upon Receipt. During the pre-receipt process, the field office shall request a 

‘Disposition Category’ from DLA Disposition Services (C16.6.9 - DLA Disposition Category 

Assignment and Associated Actions). Once the Disposition Category assignment response is 

provided, the field office shall submit the receipt for scrap to the DLA Disposition Services, 

using the DLMS 527R Receipt (Transaction Type Code D4) using a Scrap LSN. The DLMS 

527R Receipt for materiel downgraded to scrap at time of receipt shall reflect the source of the 

materiel received/returned code, (e.g., J = Return to inventory from other DoD activity users),

(see the reason for materiel receipt/return (MRR) code list).

C16.6.4. 2.1.1.2. Downgrade (Upon Receipt) of Entire Quantity on 

Disposal Turn In Document or Disposal Turn In Document and Suffix. If the entire quantity on 

the DTID number or DTID number and suffix is being downgraded to scrap, the original DTID 

number or DTID number and suffix number shall remain and the original NSN/LSN shall be 

referenced in the Receipt for audit purposes, to link to the newly assigned Scrap LSN. If the 

DTID number or DTID number and suffix is a duplicate number, then a UCN shall be generated 

for the downgrade to scrap. 

C16.6.4.2.3.1.1.3. Downgrade (Upon Receipt) of Partial Quantity on 

Disposal Turn In Document or Disposal Turn In Document and Suffix. If only part of the DTID 
.

Enclosure 1, ADC 1017

Page 2 of 3

is being downgraded to scrap, then a UCN shall be generated and the Receipt shall contain the 

original DTID number or DTID number and suffix as a secondary reference number.

C16.6.4.3.1.2. Downgrade Items After Turn-in (After Receipt). Any time after 

receipt, DLA Disposition Services may notify the Disposition Services Field Office via a DLMS 

846C, Disposition Status Update (Report Type Code PC), to change the disposition status of the 

DTID number or DTID number and suffix to DS (Disposal). When the field office receives a 

disposal recommendation, the disposition of the property at the field office is determined by predefined ultimate disposal process business rules.

C16.6.4.3.1.1.2.1. Downgrade Items to Scrap (After Receipt). If the 

business rule decision is to downgrade to scrap, the field office shall send a DLMS 947I, 

Inventory Adjustment (Type Transaction Code NU) with Quantity or Status Adjustment Reason 

Code BS – Downgrade (Loss), and associated with the original DTID number or DTID number 

and suffix. 

C16.6.4.3.2.1.2.2. Creation of New Receipt for Items Downgraded to 

Scrap Subsequent to Initial Turn-in. A new receipt is created for the scrap using the DLMS 

527R Receipt with the source of Materiel Received/Returned Code W - Receipt as a result of 

DLA Disposition Services process to downgrade to scrap, subsequent to the initial receipt of 

materiel. A DLA Disposition Services scrap LSN shall be assigned in compliance with the scrap 

classification listing for use in the new Receipt. A UCN shall be assigned and associated with 

the original DTID number or DTID number and suffix to avoid duplication in DLA Disposition 

Services. This UCN shall become the controlling document number in the DLMS 527R. The 

new receipt shall contain the original DTID number or DTID number and suffix as a secondary 

reference number, and shall reference the original materiel identification (NSN or LSN). 

C16.6.4.3.3.1.2.3. Materiel Downgraded to Scrap When Materiel Is Part 

of a Container. If the materiel/DTID number or DTID number and suffix downgraded to scrap is 

part of a container, the field office shall generate a DLMS 846A, Asset Reclassification 

Response (Report Type Code TD), to delete the DTID number or DTID number and 

suffix/container ID association in order to maintain container synchronization and inventory 

accuracy (see C16.6.3.2., Container Transfer). 

 C16.6.4.2. Upgrade from Scrap. The upgrade from scrap process is used by the 

DLA Disposition Services and its field offices when a business need exists to re-classify 

materiel previously receipted as scrap or downgraded to scrap after receipt to a useable NSN 

item. An upgrade from scrap can occur at any time subsequent to the initial receipt of scrap 

or downgraded materiel. Policy and authority for upgrading materiel from scrap can be found 

in DoD 4160.21-M.

C16.6.4.2.1. Assignment of a UCN for Materiel Upgraded from Scrap. 

Upgrading an item from scrap begins with the assignment of a UCN on the DLMS 527R 

Receipt transaction, where the eleventh character is assigned a value of ‘U’ ‘C’ to indicate it is 

related to an upgrade from scrap. The DLA Disposition Services Field Office will enter the 

scrap LSN that is being upgraded, as well as the warehouse location of the scrap pile for the 
.

Enclosure 1, ADC 1017

Page 3 of 3

specific LSN. Both the warehouse location (scrap pile) and LSN are necessary to identify the 

removal of scrap from the proper warehouse location to maintain inventory integrity of the 

remaining scrap pile. The field office will also identify the weight to be removed from the 

warehouse location (scrap pile), as well as the internal type turn-in for the item to be upgraded 

to in the DLA Disposition Services Field Office system (US – Useable, HM – Hazardous 

Materiel, or HW – Hazardous Waste).

 

C16.6.4.2.2. Inventory Adjustment (Decrease) for Scrap LSN. The field office 

will generate a DLMS 947I, Inventory Adjustment (Type Transaction Code NU) loss 

transaction with Quantity or Status Adjustment Reason Code BR to decrement the relevant 

scrap pile for the designated weight of the scrap LSN to be upgraded. The DLMS 947I 

Quantity or Status Adjustment Reason Code BR will indicate an Inventory Adjustment 

Decrease (Upgrade from Scrap), Loss resulting from the upgrade from scrap subsequent to 

the initial receipt of materiel.

C16.6.4.2.3. Creation of New Receipt for Items Upgraded from Scrap. The 

Field Office will identify the NSN the scrap is being upgraded to, in addition to quantity and 

other data required for a regular non-scrap receipt. The upgrade from scrap process will not 

reference a specific scrap DTID or DTID and suffix, only the scrap LSN and the warehouse 

location of the scrap pile. Therefore, the DLMS 527R Receipt, with the source of Materiel 

Received/Returned Code V, will pass the new usable NSN, and will include the original scrap 

LSN as a secondary reference (LIN08-SW), for auditability purposes. The new receipt is 

created for the upgraded NSN, as a result of the DLA Disposition Services process authorized 

by DoD 4160.21-M, to upgrade materiel from scrap subsequent to the initial receipt of

materiel. 
Enclosure 2, ADC 1017

Page 1 of 3

ENCLOSURE 2 TO ADC 1017

A. DLMS Supplement (DS) 527R Receipt Change Table.

# Location DLMS 527R Receipt 

Revision

Reason

1 DLMS

Intro

Notes

Add ADC 1017 to DLMS Introductory note 5:

- ADC 1017, Intra-DLA Change: Revisions to Procedures and to 

DLMS 527R Receipt and 947I Inventory Adjustment, and 

MILSTRIP to Support the Upgrade from Scrap Process used by 

DLA Disposition Services under Reutilization Business 

Integration (RBI) 

Identifies changes 

included in DS.

2 2/LIN01/010 Add new code W to the LIN01 receipt codes; Revised code V:

22. V - Reserved for assignment by DoD. Upgrade from Scrap. 

Receipt as a result of DLA Disposition Services process, authorized 

by DoD 4160.21-M, to upgrade materiel from scrap subsequent to 

the initial receipt of materiel. There is no corresponding 

MILSTRAP legacy DIC for this use. Authorized DLMS 

enhancement for DLA Disposition Services only. Refer to ADC 

1017.

23. W – Downgrade to Scrap. Receipt as a result of DLA Disposition 

Services process, authorized by DoD 4160.21-M, to downgrade materiel 

to scrap subsequent to the initial receipt of materiel. There is no 

corresponding MILSTRAP legacy DIC for this use. Authorized DLMS 

enhancement for DLA Disposition Services only. Refer to ADC 443.

New code V for 

receipt from 

upgrade to scrap 

supports RBI 

requirements.

Administrative 

update to code W.
.

Enclosure 2

ADC 1017

Page 2 of 3

# Location DLMS 527R Receipt 

Revision

Reason

3 2/LIN08/010 Add new DLMS note 2 to LIN08:

DLMS Note: 

1. DLA Disposition Services uses the Reference Materiel Number for the 

downgrade to scrap process, when materiel turned into a DLA 

Disposition Services Field Office was determined to be scrap at initial 

receipt and/or downgraded after receipt, and a DLA Disposition 

Services scrap LSN was cited at LIN02/LIN03. The NSN or LSN that the 

generator identified when materiel was turned in will be populated as 

the Reference Materiel Number at LIN08/LIN09. Authorized DLMS 

enhancement for use by DLA Disposition Services in receipt and 

historical receipt transactions for downgrade to scrap (LIN01 code W). 

Refer to ADC 443. 

2. DLA Disposition Services uses for their upgrade from scrap process, 

to cite the original scrap LSN for the item that was upgraded. The 

NSN for the upgraded item is cited at LIN02/LIN03. Authorized 

DLMS enhancement for use by DLA Disposition Services in receipt 

and historical receipt transactions for upgrade from scrap (LIN01 

code V). Refer to ADC 1017.

3. For DLMS use only the following codes are authorized. 

FS National Stock Number

SW Stock Number

DLMS Note: Use to identify the local stock number (LSN).

Supports RBI.

Reference 

Materiel Number 

is the cross 

reference materiel 

ID required when 

materiel is 

downgraded to, or 

upgraded from, 

scrap. 

4 Through-out Make the following administrative updates throughout DLMS 527R, in 

the Federal and DLMS notes:

For ‘document identifier code’, change ‘DI Code’ to ‘DIC’. Spell out 

(with acronym) the first time used in DLMS Introductory Note 1.

Insert the word ‘legacy’ when referring to MILSTRAP DICs 

(MILSTRAP legacy DIC).

Change the word ‘material’ to materiel’.

Administrative 

update for 

consistency with 

administrative 

change to DLM 

4000.25, DLMS.

B. DLMS Supplement 947I CHANGE TABLE (table reflects version 4030; corresponding changes 

will be made to version 4010; however NOTE that only version 4030 of the 947I has IUID capability):

# Location

(version 

4030)

DLMS 947I Inventory Adjustment 

Revision

Reason

1 DLMS

Intro

Notes

Add ADC 1017 to DLMS Introductory note:

- ADC 1017, Intra-DLA Change: Revisions to Procedures and to 

DLMS 527R Receipt and 947I Inventory Adjustment, and 

MILSTRIP to Support the Upgrade from Scrap Process used by 

DLA Disposition Services under Reutilization Business Integration 

(RBI) (Supply)

Identifies changes 

included in DS.
.

Enclosure 2

ADC 1017

Page 3 of 3

# Location

(version 

4030)

DLMS 947I Inventory Adjustment 

Revision

Reason

2 2/W1901/

0200

Add new qualifier ‘BR’ with DLMS note:

BR Regrade

DLMS Note: Inventory Adjustment Decrease (Upgrade from 

Scrap). Loss resulting from the DLA Disposition Services 

process, authorized by DoD 4160.21-M, to upgrade materiel

from scrap subsequent to the initial receipt of materiel. Single 

adjustment. There is no corresponding MILSTRAP legacy 

DIC function. Authorized DLMS enhancement for DLA 

Disposition Services only. Refer to ADC 1017.

New quantity or status 

adjustment reason code,

for inventory adjustment 

resulting from upgrade 

from scrap, supports 

DOD 4160.21-M and 

RBI requirements to be 

able to upgrade materiel 

from scrap to a usable, 

hazardous material, or 

hazardous waste status.

3 Throughout

Make the following administrative update throughout DLMS 947I in 

the Federal and DLMS notes:

For ‘document identifier code’ in DLMS notes, change ‘DI Code’ to 

‘DIC’. Spell out first time used.

Insert the word ‘legacy’ when referring to MILSTRAP DICs (i.e., 

MILSTRAP legacy DIC).

Change the word ‘material’ to materiel’.

Administrative update

for consistency with 

administrative change to 

DLM 4000.25, DLMS.